In What Form Will My Benefits Be Paid?
There are seven basic forms of retirement payments available under the Plan. You may elect the form that best meets your needs. However, if you do not choose a joint and survivor form of benefits, you will need to provide the Board with the consent of your spouse.
You must choose the form of retirement payment before any distribution from the Plan is made to you. You cannot change the form of an annuity payment after retirement distributions begin.
1. Joint and 100% Survivor Annuity
This is an annuity with monthly payments for your life with a survivor annuity in an amount of 100 percent of your life annuity paid to your surviving beneficiary over his or her lifetime.
2. Joint and Survivor Annuity with 10 or 15 Years Certain
This form of benefit guarantees payments will be made for at least a specified number of years. (You can choose either a 10-year period of a 15-year period.) Under this type of annuity, you and your beneficiary will receive monthly annuity payments for as long as you live. However, if both you and your beneficiary die before the specified 10-year or 15-year period is completed, annuity payments will continue for the remainder of the specified period to your estate. You must choose whether your guaranteed payments will be made for 10 years or for 15 years by completing an election form available from the Board before you begin to receive your Plan benefits.
3. Single Life Annuity
A single life annuity is a series of fixed payments paid monthly for your lifetime. Payment ceases upon the death of the annuitant.
4. Single Life Annuity with 10 or 15 Year Certain
Under a single life annuity with a 10 or 15 year certain period, guaranteed monthly payments will be made to you for at least a specified number of years. (You can choose either a 10-year period or a 15-year period.) Under this form of annuity, you will receive monthly payments for as long as you live. However, if you die before the specified 10-year or 15-year period is completed, annuity payments will continue for the remainder of the specified period to a beneficiary selected by you.
5. Fixed Installment
This form of benefit provides you with installment payments. There are two types of installment payments that you may choose:
A. You can choose to receive funds in equal monthly payments over a period of time that you specify. The period must be no less than twelve months and no more than your life expectancy.
B. In the alternative, you can choose to receive a certain dollar amount per month, until the funds in your account are exhausted.
If you elect installment payments, any amount remaining in your Account after you die will be paid in installments to your beneficiary. If your beneficiary dies before all the installments have been paid, the balance will be paid in a lump sum to your beneficiary’s designated beneficiary, or to his/her estate, if there is no designated beneficiary.
6. Lump Sum
You may choose to receive a payment from the Plan as a single distribution of the total value of your Account. You may request a lump sum payment of your Account. In the alternative, you may also elect to receive a partial lump sum by taking an initial payment of a portion of your Account in a lump sum form and payment of the remaining amount of your Account in one of the other permitted forms of payment.
You may choose to rollover all, or part, of your account balance into another retirement plan of your choosing.
**As a general rule, allowable distributions from your 403(b) retirement plan may begin as early as age 59 1/2. Federal regulations provide that payments must begin no later than the calendar year in which you retire from employment with your Free Will Baptist employer or the calendar year in which you attain age 72, whichever occurs later.
IF I SHOULD DIE BEFORE I RETIRE, WILL MY SPOUSE RECEIVE THE BENEFIT?
In the event of the death of the participant before settlement, generally, the surviving spouse has the same distribution options as the participant. If the participant and spouse die before settlement, all benefits are paid to the secondary beneficiary or to the children, the parents, the brothers and sisters, or the executors and administrators of the estate.
HOW DO I REPORT MY RETIREMENT BENEFITS ON MY TAXES?
You will receive a 1099-R each year that you have a retirement benefit distribution, whether that comes from your annuity, self-directed settlement or lump sum distribution.